Economic growth decelerated in the 4th quarter
According to Statistics Estonia, by flash estimates, the gross domestic product (GDP) of Estonia increased by 4% in the 4th quarter of 2011 compared to the same quarter of the previous year. In 2011, the annual GDP grew by 7.5% compared to the previous year.
Compared to the previous quarter, the seasonally and working-day adjusted GDP decreased by 0.8% in the 4th quarter. This was preceded by deceleration of the growth rate in two quarters. The last time that the GDP decreased compared to the previous quarter was in the 1st quarter of 2010.
Manufacturing had the biggest impact on the economic growth during the previous one and a half year. The growth of the value added of this economic activity was supported primarily by fast growth of the export of its output. However, the growth of the export of the manufacturing decelerated abruptly in the 4th quarter of 2011 primarily due to the decrease in the export of computers, electronic and optical products. This had a substantial effect on the deceleration of the growth of the value added of the manufacturing.
According to the preliminary estimates the GDP growth in the 4th quarter was inhibited most by the fast deceleration or decrease in the value added of the manufacturing, energy supply and real estate activities.
The GDP growth was contributed most by the fast growth of the value added of construction. The growth in construction is supported mainly by the repair and reconstruction work of buildings. In addition, the increase of the value added of wholesale and detail trade, information and communication and agriculture and forestry had considerable impact on the GDP growth.
GDP growth, 1st quarter 2007 – 4th quarter 2011
The second estimate of the GDP of 2011 and of the 4th quarter calculated by production, expenditure and income approaches will be published by Statistics Estonia on 9 March.